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Uganda’s Anti-Money Laundering Laws Get a Boost with New Amendments on Beneficial Ownership Transparency
Kampala - In an effort to strengthen its anti-money laundering and combating the financing of terrorism (AML/CFT) regime, Uganda has introduced several new bills in parliament aimed at enhancing transparency of beneficial ownership information for legal persons and partnerships. The amendments aim to address deficiencies in the country’s AML/CFT legal framework and ensure compliance with international standards.
New Bills Introduced
The new bills include:
- Companies Amendment Bill 2022
- Partnership Amendment Bill 2022
- Trustees Incorporation Amendment Bill 2022
- Anti-Money Laundering Amendment Bill 2022
- Cooperative Societies Amendment Bill 2022
- Anti-Terrorism Amendment Bill 2022
These bills were passed by parliament with amendments and are expected to be assented to by the President.
Proposed Amendments
The proposed amendments introduce new provisions aimed at combating financing of terrorism, including:
Definition of a Beneficial Owner
According to the Bills, a beneficial owner is defined as a natural person who has ultimate or final ownership or control of an entity, or a natural person on whose behalf a transaction is conducted in an entity.
Register of Beneficial Owners
Under the proposed amendments, legal bodies will be required to maintain a register of beneficial owners that contains particulars such as:
- Names
- Postal address
- Identification particulars
- Nature of beneficial ownership
- Other related matters
The register must be kept at the registered offices of the entity, and the entity must notify the Registrar of the place where its register of beneficial owners is kept and any changes within 14 days.
Anti-Money Laundering Amendment Bill
This bill also seeks to empower the Financial Intelligence Authority and supervisory authorities to levy administrative penalties for breach of the provisions of the Act.
Anti-Terrorism Amendment Bill
This bill creates a new offence of proliferation financing, where a person or organization makes available an asset, provides a financial service, or conducts a financial transaction in knowledge or recklessness that the asset, financial service, or financial transaction is intended to facilitate any of the activities that constitute proliferation financing.
Impact on Uganda’s AML/CFT Regime
If passed, the amendments will introduce new requirements for legal bodies in Uganda, including companies, trusts, cooperatives, and partnerships, to ensure and strengthen beneficial ownership transparency. The move follows a similar approach taken by other countries such as Singapore, Kenya, Tanzania, Ghana, and Nigeria, which have introduced measures to enhance transparency of beneficial ownership information.
The amendments are expected to enhance Uganda’s AML/CFT regime and strengthen its ability to combat money laundering and terrorist financing.